Mortgage Makeover

Shop around to beat the rate rise monster

In the uncertain climate, homeowners need to evaluate their budgets to prepare for higher mortgage repayments and for the increased costs with the holiday season fast approaching. Borrowers have already felt the impact of rising petrol prices and previous rate rises hit consumers hard.

Putting aside extra funds or incorporating a financial safeguard is imperative in the changing times ahead. It would be highly beneficial to schedule an appointment with your mortgage lender now to evaluate your home loan situation, “Australian Mortgage Options managing director Robert Projeski said.

“Make sure it is in line with your current financial status and needs going forward, taking into consideration further interest rate rise.

“If your existing home loan no longer suits your requirements or financial position, refinancing could be your best option.”

Robert Projeski said many people chose to fix their rates to provide stability, but they should also consider products that still gave flexibility to make unlimited extra repayments as these could be redraw in times of need.

He said AMO offered back-up suppose for their borrowers through regular “loan health checks” and “Mortgage makeovers”, should peoples situations change.

“It is at this time that homeowners need to be aware that these services are available and use them to protect themselves against defaulting on their loan and potentially affecting their credit rating,” Mr Projeski said.

“People need to put strategies in place for peace of mind, knowing that they will be able to cover their repayments no matter what happens in the short to medium term.”

“People shouldn’t lock for too long,” he said.

“Borrowers need to seek professional advice if they are unsure of their economic position or just want to reaffirm that they will be able to manage their cash flow if costs increase.”

By Robert Projeski, Managing director
AMO (Australian Mortgage Options)

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